Aeon Credit earnings up 520% in first quarter


PETALING JAYA: AEON Credit Service (M) Bhd’s net profit for its first quarter ended May 31, 2021 has ballooned five times year-on-year (y-o-y) to RM163.09mil from RM26.28mil previously.

This was mainly due to lower impairment loss and prudent cost management recorded in the quarter. The group’s revenue rose 5.4% y-o-y to RM410.97mil from RM389.88mil in the corresponding quarter last year.

Aeon Credit’s total transaction and financing volume had increased by 80.9% to RM1.41bil while its transaction and financing volume also saw an increase by 11.5% as compared to the preceding quarter.

The company’s gross financing receivables for the quarter saw a slight decrease of RM460.07mil to RM10.06bil while non-performing loan ratio stood at 1.75% as of May 31, 2021, compared to 1.42% a year ago.

The ratio of total operating expense against revenue was recorded at 38.6% for the current quarter, down from 71.2% last year, mainly due to lower allowance for impairment losses on financing receivables of RM23.25mil as compared to RM174.37mil.

On its prospects, Aeon Credit said it is confident that it is in the position to grow its business further through digital transformation and to maintain its financial performance for the year, having taken full consideration the Covid-19 pandemic and the uncertainties ahead.

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